Pak Suzuki has reported a net loss of Rs 460.2 million in the first quarter ended March 31, 2022, in contrast to a net profit of Rs 777.9 million in the same quarter of the previous year. The company has informed Pakistan Stock Exchange (PSX) in a statement on Tuesday.
This comes mainly due to a surge in the import cost of parts amid massive Pak Rupee depreciation. Accordingly, it incurred a loss per share of Rs 5.59 in the quarter under review compared to earnings per share of Rs 9.45 in the corresponding quarter of the previous year. Pak Suzuki’s share price dropped 5.74% (or Rs 12.21) to Rs 200.49 with 152,043 shares turnover at PSX.
During the first quarter, revenue stood at Rs 47.7 billion compared to Rs 36 billion in the same period of the previous year, up by 33% year-on-year. The increase in revenue is mainly attributable to volumetric growth coupled with price revision. Gross margins clocked in at 2.8% in the quarter against 6.1% reported in the same period last year primarily due to rupee devaluation coupled with higher freight cost.
Other income clocked in at Rs 527 million against Rs 619 million, down by 15% due to decline in cash and cash equivalents. The selling and distribution cost clocked in at Rs 732 million against Rs 710 million, up by 3%. The increase in distribution cost is due to an increase in volumetric sales coupled with a rise in freight charges. Financial charges clocked in at Rs 1 billion against Rs 250 million, up by 312%. The increase in financial charges is mainly attributable to increase in policy rate followed by exchange loss.
Source: The Express Tribune
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